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House committee advances bill to standardize penny rounding for cash transactions
Summary
The House State Affairs Committee moved HB 281 from committee after sponsors argued the measure would protect consumers and give retailers a clear, symmetrical rounding rule for cash transactions while excluding digital and tax calculations.
The House State Affairs Committee on May 12 moved House Bill 281, the Penny Rounding bill, out of committee with individual recommendations and fiscal notes.
Representative Dan Sadler, the bill sponsor, told the committee the measure would establish a consistent rounding method at store registers to protect consumers and avoid situations where retailers round in ways that advantage the business. "The benefit of a consistent method that we all know about … people will still be comfortable using cash and not feel that they're being taken advantage of," Sadler said.
Committee members offered mostly positive remarks. Representative Hemschute said she supports the bill and requested a printable notice merchants could post at tills if amendments permit props, noting a simple, standard approach would be easier for cashiers and customers. Representative Kevin McCabe and others noted many retailers already price to avoid pennies; staff answered questions about currency status, saying pennies would remain legal tender even if minting ceased and would likely become rarer over time.
The sponsor and staff clarified the bill applies only to cash transactions at the register and does not change calculations for sales tax, income tax or property tax; they cited guidance from the National Conference of State Legislatures recommending rounding not be applied to electronic transactions.
A committee member moved that HB 281 (LS 1281) be passed from committee with individual recommendations and fiscal notes; Chair Kerrick said there was no objection and the bill was moved from committee. The committee did not take a roll-call vote on final passage in the room; the motion to report the bill carried with no objection recorded in committee.
The committee will continue to work language and any amendments as the bill proceeds. The next scheduled meeting is May 14, when the committee may take additional action on other bills on the agenda.
